<PAGE>
PIMCO FUNDS: MULTI-MANAGER SERIES
Supplement Dated June 12, 2000
to the
Prospectus for Institutional and Administrative Class Shares
Dated April 3, 2000
DISCLOSURE RELATING TO PIMCO INTERNATIONAL GROWTH FUND
Change in Advisory Fee Rate
On May 8, 2000, the monthly advisory fee payable by PIMCO International
Growth Fund (the "Fund") to PIMCO Advisors L.P. ("PIMCO Advisors"), the Fund's
investment adviser and administrator, decreased by 0.10% , from 0.85% of the
average daily net assets of the Fund to 0.75% of the average daily net assets of
the Fund.
The subsection of the Fund's Fund Summary captioned "Fees and Expenses of
the Fund" is amended in its entirety to read as follows.
FEES AND EXPENSES OF THE FUND
These tables describe the fees and expenses you may pay if you buy and hold
Institutional Class or Administrative Class shares of the Fund:
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) None
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
<TABLE>
<CAPTION>
Distribution Total Annual
Advisory and/or Service Other Fund Operating
Share Class Fees (12b-1) Fees Expenses(1) Expenses
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Institutional 0.75% None 0.50% 1.25%
--------------------------------------------------------------------------------------------------------------------------
Administrative 0.75 0.25% 0.50 1.50
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Other Expenses reflects a 0.50% Administrative Fee paid by the class.
EXAMPLES. The Examples below are intended to help you compare the cost of
investing in Institutional Class or Administrative Class shares of the Fund with
the costs of investing in other mutual funds. The Examples assume that you
invest $10,000 in the noted class of shares for the time periods indicated, and
then redeem all your shares at the end of those periods. The Examples also
assume that your investment has a 5% return each year, the reinvestment of all
dividends and distributions, and the Fund's operating expenses remain the same.
Although your actual costs may be higher or lower, the Examples show what your
costs would be based on these assumptions.
<TABLE>
<CAPTION>
Share Class Year 1 Year 3 Year 5 Year 10
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Institutional $127 $397 $686 $1,511
---------------------------------------------------------------------------------------------------------------------
Administrative 153 474 818 1,791
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
CHANGES TO PRINCIPAL INVESTMENTS AND STRATEGIES
Effective on or around September 1, 2000, the description of PIMCO
International Growth Fund under "Principal Investments and Strategies" in the
Fund's Fund Summary is amended to read in its entirety as follows:
The Fund seeks to achieve its investment objective by
normally investing at least 65% of its assets in an
international portfolio of common stocks and other equity
securities of companies located outside of the United
States. Although the Fund normally invests in issuers from
at least five different countries, it may at times invest
in fewer than five countries, or even a single country. The
Fund typically invests in approximately 50 to 60 stocks,
with each stock usually constituting from 1.25% to 2.5% of
the Fund's portfolio. The Fund may invest in both developed
and developing, or "emerging," markets. The Fund has no
prescribed limits on geographic asset distribution and may
invest in any foreign securities market in the world. The
Fund may also invest in securities of foreign issuers
traded on U.S. securities markets, but will normally not
invest in U.S. issuers. The Fund invests most of its assets
in foreign securities which trade in currencies other than
the U.S. dollar and may invest directly in foreign
currencies.
The portfolio manager selects securities for the Fund using
the Sub-Adviser's "Best Research" investment style. The
Best Research style uses a research-driven "bottom-up"
approach that seeks to utilize the Sub-Adviser's global
research capabilities to identify companies with above-
average long-term growth prospects and attractive
valuations and that possess a sustainable competitive
advantage, such as superior or innovative products,
personnel and distribution systems. The portfolio manager
seeks to select those stocks with the best long-term
performance expectations, using a broad range of company
fundamentals, such as long-term growth prospects, price-to-
earnings ratios and other valuation measures, dividend and
profit growth, balance sheet strength and return on assets.
The portfolio managers sell stocks in order to adjust or
rebalance the Fund's portfolio and to replace companies
with weakening fundamentals.
The Fund may utilize foreign currency exchange contracts
and derivative instruments (such as stock index futures
contracts) primarily for portfolio management and hedging
purposes. The Fund may also invest in equity securities
other than common stocks (such as equity-linked securities,
preferred stocks and convertible securities) and may invest
up to 10% of its assets in other investment companies. In
response to unfavorable market and other conditions, the
Fund may make temporary investments of some or all of its
assets in foreign and domestic fixed income securities and
in equity securities of U.S. issuers. This would be
inconsistent with the Fund's investment objective and
principal strategies.
Change in Investment Objective
Effective on or around September 1, 2000, the Fund intends to change its
investment objective to read as follows: "Seeks capital appreciation."
EXPECTED CHANGES IN SUB-ADVISORY ARRANGEMENTS
Subject to the approval of the shareholders of the Fund, beginning on or
around September 1, 2000 PIMCO Advisors intends to retain PIMCO/Allianz
International Advisors LLC ("PAIA") as the sub-adviser to the Fund. PAIA is a
wholly owned subsidiary of PIMCO Advisors. As sub-adviser, PAIA will have full
investment discretion
<PAGE>
and will make all determinations with respect to the investment of the Fund's
assets. Summary information about PAIA and the individuals who will have primary
investment management responsibility for the Fund is provided below.
Name and Address
----------------
PIMCO/Allianz Investment Advisors LLC
1345 Avenue of the Americas
50th Floor
New York, NY 10105
Portfolio Managers
------------------
Udo Frank
Gerd Wolfgang Hintz
Recent Professional Experience
------------------------------
Mr. Frank. Managing Director and Chief Investment Officer of Allianz Asset
Advisory and Management GmbH ("Allianz AAM"), responsible for the entire
investment area (since 1997). Previously, Mr. Frank served as the Chief
Investment Officer of Allianz KAG (since 1994).
Mr. Hintz. Managing Director of the Equity Research Department at Allianz AAM
since 1998. In addition, Mr. Hintz has been responsible for Allianz AAM's
trading department since January 2000. Previously, he was the head of Research
and Investor Relations of Allianz Lebensverischerungs AG.
CHANGE OF NAME
In connection with the above changes, on or around September 1, 2000 the
Fund intends to change its name to "PIMCO/Allianz Select International Fund."
<PAGE>
PIMCO FUNDS: MULTI-MANAGER SERIES
Supplement dated June 12, 2000
to the Prospectus for Institutional and Administrative Class Shares
dated April 3, 2000
TERMINATION OF SMALL-CAP FUND
The Board of Trustees of PIMCO Funds: Multi-Manager Series (the "Trust")
has determined that the Small-Cap Fund (the "Fund") will terminate and that the
Fund's net assets will be distributed to shareholders in liquidation of the
Fund.
TIMING AND MECHANICS. The Fund will terminate on or about July 28, 2000
(the "Termination Date"). Any shares of the Fund outstanding on the Termination
Date will be automatically redeemed on that date. The proceeds of any such
redemption will be the net asset value of such shares after all charges, taxes,
expenses and liabilities of the Fund have been paid or provided for. All
shareholders will receive cash in return for their shares.
OTHER ALTERNATIVES. At any time prior to the Termination Date,
shareholders may redeem their shares of the Fund and receive the net asset value
thereof, pursuant to the procedures set forth under "Purchases, Redemptions and
Exchanges--Redeeming Shares" in the Prospectus. Shareholders may also exchange
their shares of the Fund for shares of the same class of any other PIMCO Fund
that offers that class, as described in and subject to any restrictions on
exchanges set forth under "Purchases, Redemptions and Exchanges--Exchange
Privilege" in the Prospectus.
SUSPENSION OF SALES. Except as noted below, on and after June 13, 2000,
the Fund will no longer sell Institutional Class or Administrative Class shares
to new investors or to existing shareholders, and the Fund will no longer be
eligible for exchanges from other PIMCO Funds.
Any participants in self-directed qualified benefit plans that own shares
of the Fund as of June 13, 2000 for any single plan participant will be eligible
to direct the purchase of Fund shares by their plan account for so long as the
plan continues to own such shares of the Fund for any plan participant.
U.S. FEDERAL INCOME TAX MATTERS. For taxable shareholders, the automatic
redemption of shares of the Fund on the Termination Date will generally be
treated as any other redemption of shares, i.e., as a sale that may result in a
gain or loss for federal income tax purposes. See "Tax Consequences" in the
Prospectus. Instead of waiting until the Termination Date, a shareholder may
voluntarily redeem his or her shares of the Fund prior to the Termination Date
to the extent that the shareholder wishes to realize any such gains or losses
prior thereto. In light of the pending termination of the Fund, shareholders
should consult their tax advisers regarding the tax treatment applicable to the
redemption of the Fund's shares for federal income tax purposes and also
regarding possible state and local tax consequences.
If you have any questions regarding the termination, please contact the
Trust at 1-800-927-4648.
<PAGE>
PIMCO FUNDS: MULTI-MANAGER SERIES
Supplement Dated June 12, 2000
to the
Prospectus for Institutional and Administrative Class Shares
Dated April 3, 2000
DISCLOSURE RELATING TO PIMCO MID-CAP EQUITY FUND
Change in Advisory Fee Rate
Effective August 1, 2000, the monthly advisory fee payable by PIMCO Mid-Cap
Equity Fund (the "Fund") to PIMCO Advisors L.P. ("PIMCO Advisors"), the Fund's
investment adviser and administrator, will decrease by 0.03%, from 0.63% of the
average daily net assets of the Fund to 0.60% of the average daily net assets of
the Fund.
The subsection of the Fund's Fund Summary captioned "Fees and Expenses of
the Fund" is amended in its entirety to read as follows.
FEES AND EXPENSES OF THE FUND
These tables describe the fees and expenses you may pay if you buy and hold
Institutional Class or Administrative Class shares of the Fund:
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) None
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
<TABLE>
<CAPTION>
Distribution Total Annual
Advisory and/or Service Other Fund Operating
Share Class Fees (12b-1) Fees Expenses(1) Expenses
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Institutional 0.60% None 0.25% 0.85%
-------------------------------------------------------------------------------
Administrative 0.60 0.25% 0.25 1.10
-------------------------------------------------------------------------------
</TABLE>
(1) Other Expenses reflects a 0.25% Administrative Fee paid by the class.
EXAMPLES. The Examples below are intended to help you compare the cost of
investing in Institutional Class or Administrative Class shares of the Fund with
the costs of investing in other mutual funds. The Examples assume that you
invest $10,000 in the noted class of shares for the time periods indicated, and
then redeem all your shares at the end of those periods. The Examples also
assume that your investment has a 5% return each year, the reinvestment of all
dividends and distributions, and the Fund's operating expenses remain the same.
Although your actual costs may be higher or lower, the Examples show what your
costs would be based on these assumptions.
<TABLE>
<CAPTION>
Share Class Year 1 Year 3 Year 5 Year 10
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Institutional $ 87 $271 $471 $1,049
--------------------------------------------------------------------------------
Administrative 112 350 606 1,340
--------------------------------------------------------------------------------
</TABLE>
<PAGE>
CHANGES TO PRINCIPAL INVESTMENTS AND STRATEGIES
Effective on or around August 1, 2000 the description of PIMCO Mid-Cap
Equity Fund under "Principal Investments and Strategies" in the Fund's Fund
Summary is amended to read in its entirety as follows:
The Fund seeks to achieve its investment objective by normally investing at
least 65% of its assets in securities of companies with market
capitalizations of at least $1 billion at the time of investment. The Fund
may invest up to 75% of its assets in securities selected for their growth
potential. The Fund will normally invest at least 25% of its assets in
securities selected for their income potential, including dividend-paying
common stocks, preferred stocks, corporate bonds, convertible securities
and REITs.
When selecting securities for the Fund's "growth" segment, the portfolio
managers seek to identify companies with well-defined ''wealth creating''
characteristics, including superior earnings growth (relative to companies
in the same industry or the market as a whole), high profitability and
consistent, predictable earnings. In addition, through fundamental
research, the portfolio managers seek to identify companies that are
gaining market share, have superior management and possess a sustainable
competitive advantage, such as superior or innovative products, personnel
and distribution systems. The Fund's portfolio managers may choose to sell
a stock in the "growth" segment when they believe that its earnings will be
disappointing or that market sentiment on the company will turn negative.
The portfolio managers will also consider selling a stock if the company
does not meet the managers' estimates on revenues and/or earnings, or if an
alternative investment is deemed to be more attractive.
When selecting stocks for the Fund's "income" segment, the portfolio
managers seek to identify companies with strong operating fundamentals that
offer potential for capital appreciation and that also have a dividend
yield in excess of the yield on the S&P 500 Index. The portfolio managers
may replace an "income" security when another security with a similar risk-
to-reward profile offers either better potential for capital appreciation
or a higher yield than the Fund's current holding. To achieve its income
objective, the Fund may also invest in preferred stocks, corporate bonds,
convertible securities and REITs.
The Fund may invest up to 15% of its assets in foreign securities, usually
in the form of American Depository Receipts. In response to unfavorable
market and other conditions, the Fund may make temporary investments of
some or all of its assets in high-quality fixed income securities. This
would be inconsistent with the Fund's investment objective and principal
strategies.
In addition, in connection with the above changes, "Principal Risks" is
amended to indicate that the following are among the principal risks of
investing in the Fund: Market Risk, Issuer Risk, Growth Securities Risks, Value
Securities Risk, Smaller Company Risk, Liquidity Risk, Foreign Investment Risk,
Currency Risk, Focused Investment Risk, Interest Rate Risk, Credit Risk and
Management Risk.
EXPECTED CHANGE IN INVESTMENT OBJECTIVE
Subject to the approval of the shareholders of the Fund, on or around
August 1, 2000, the Fund intends to change its investment objective to read as
follows: "Seeks growth of capital; income is a secondary objective." Subject to
shareholder approval, the Fund also intends to make its investment objective
"non-fundamental" so that in the future it may be changed by the Board of
Trustees without shareholder approval.
<PAGE>
CHANGE IN PORTFOLIO MANAGEMENT ARRANGEMENTS
Effective August 1, 2000, the portfolio managers of the Fund will be
Kenneth W. Corba and Peter C. Thoms of PIMCO Equity Advisors. Information about
Mr. Corba, the Fund's current co-portfolio manager, and PIMCO Equity Advisors is
set forth in the Prospectus under the caption "Management of the Funds -- Sub-
Advisers." Mr. Thoms is a Research Analyst with PIMCO Equity Advisors. Prior
to joining PIMCO Equity Advisors in May, 1999, he was an investment analyst at
Federated Investors from July 1998 to May 1999.
CHANGE OF NAME
In connection with the above changes, on or around August 1, 2000 the Fund
intends to change its name to "PIMCO Growth & Income Fund."
